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A new survey released by the Federal Reserve Bank of Philadelphia finds that Americans earning six-figure salaries are increasingly worried about making their monthly payments.
of investigation The survey found that more than 30% of respondents earning between $100,000 and $149,999 a year are worried about making ends meet within the next six months — a significant increase from a year ago, when 21.3% of this income group expressed concern about making ends meet.
At the same time, about 32.5% of people earning more than $150,000 are worried about their ability to pay, also up from the 21.7% figure reported a year ago.
Interestingly, wealthy Americans are more worried about their finances than many less wealthy individuals. Reduced incomeAbout 29.8% of individuals making between $40,000 and $69,999 a year said they were concerned, up from 23.9% last year.
Small businesses face a new threat: rising rents
A customer shops at a supermarket in Foster City, California, on September 13, 2023. (Photo by Li Jianguo/Xinhua via Getty Images/Getty Images)
But consumers making less than $40,000 a year are the most concerned, with about 40% worried about making ends meet, according to the survey.
By many measures, the economy is healthy. The labor market is growing steadily, but only slowly. The number of employees increased by 272.,000 The number of new employees in May exceeded 100,000. Job openings remain high and the unemployment rate remains roughly steady at 4%.
But Americans are also struggling with the highest interest rates in two decades and chronically high inflation that has dramatically increased the costs of basic necessities like groceries, rent and gasoline.
Inflation has fallen significantly from a peak of 9.1% recorded in June 2022, but remains above the Federal Reserve’s 2% target. And compared to January 2021, just before inflation began to rise, The inflation crisis beganthe price is about 20%.
Fed keeps interest rates at 23-year high, expected to cut only once this year
Many families have yet to receive any material relief. Food prices have risen more than 21% since the start of 2021, and housing costs have risen 18.37%, according to FOX Business calculations. Meanwhile, energy prices have increased 38.4%.
Rising prices are especially devastating for low-income Americans, who tend to spend a large portion of their already stretched paychecks on necessities. Save money.
With inflation still high, the typical U.S. household had to pay $227 more per month in March to buy the same goods and services as a year ago. Americans are paying an average of $784 more per month compared to the same period two years ago, and $1,069 more than they were paying three years ago.
As spending on everyday items increases, Americans are on fire More and more people are dipping into their savings and turning to credit cards to cover basic expenses.
Window display sign for Vacation Supply Company in Miami Beach, Florida. (Photo: Jeffrey Greenberg/Universal Images Group via Getty Images/Getty Images)
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The latest survey results come amid growing pessimism about the financial situation of U.S. households under President Biden.
A recently released Gallup poll found that Americans are less optimistic about the state of the economy. U.S. Economy Fewer voters trust Biden to propose or do the right thing for the economy than they have in recent months: In 2020, about 47% of respondents said they trusted former President Trump to do the right thing for the economy.
“Biden’s poor economic performance could have a major impact on the election because not only does it have the lowest economic rating of any president seeking reelection since Gallup began polling in 2001, but independents also trust his opponent more than they trust Biden,” Gallup said.
